FLORIDA KNOWLEDGE CENTER

Negative Amortization Loan programs, which were once available to only the wealthiest of a banks customers due to their ability to allow borrowers to defer interest, are now being marketed to more "conventional" self employed borrowers, business owners, and beneficiaries of passive income, investment income, rental income or even substantial bonus or commission income.

When they were originally introduced, negative amortization loan programs were marketed under names such as "deferred interest mortgage" or "payment cap ARM", which very accurately reflect the nature of these "neg-am" mortgages, which are very powerful tools intended for homeowners with a certain degree of financial sophistication. While reverse mortgages are one type of negative amortization loan, the sort which have received the most press and the widest number of names are the so called "pay option" negative amortization loan program, which allows borrowers to choose each month whether or not they will defer or pay down the interest due on their mortgage.

As negative amortization loans have entered the mainstream in recent years, they have shed their "technical" sounding names and have been marketed to consumers under a nearly countless number of different monikers.

Here is a list of some of the most popular names for negative amortization loan programs, compiled by mortgage professionals from across the industry, although no opinions are expressed or implied about these loans or the companies who market them. This is just a list of names for nagative amortization loan programs:

The negative amortization loan may increase your principal balance when your monthly payment is below the interest accrued on your loan that month.

Minimum Payment Option

Investor Loan

Minimum Payment Option ARM

Deferred Interest Loan.

All NegAM home loans eventually require full repayment of principal and interest according to the original term of the mortgage and note signed by the borrower.

GPM

Fixed Negative Amortization Loan

Graduated Payment Mortgage

OptPay ARM

1% Loan

1-1 Buydown (no negative amortization if buy down account is fully funded)

Option Payment

Scheduled Negative Amortization Loan

Fixed Rate Pick a Pay

Equity Builder

Neg-Am Loan

0.25% Option ARM

Interest Only (misnomer)

Quicken Smart Loan

Fixed Pick a Pay

Pick Your Payment

Secure Advantage

Deferred Interest Mortgage

Minimum Payment Loan

Pay Option

Negative Mortgage

1% Mortgage

Cash Flow Advantage

Cash Flow Construction Loan

Pay Option ARM

Fixed Option ARM

Power Option ARM

Flex Option

Flex Pay Option

Negative Amortization Mortgage

NegAm Home Loan

Cash Flow ARM

Flex 5

Secure Advantage

Payment Cap ARM

5 Year Fixed Pay Option

30 Year Fixed Rate Option ARM

Pick a Pay

Pick a Payment

Smart Choice

Smart 30 Mortgage

1 Month MTA

1 Month ARM

Self Employed Cash Flow Loan

Investor ARM

12 MAT Mortgage

Lower Than Interest Only

Managed Mortgage Amortization Loan

Pay Advantage Plus

MTA Option ARM

Fixed Rate Option ARM

Fixed Pay Option

Power Fixed 30

COSI ARM

One Percent Mortgage

Payment Advantage Mortgage

Deferred Interest Home Loan

3-2-1 Buydown (no negative amortization if buy down account is fully funded)

Reverse Mortgage

Monthly Adjustable Rate Mortgage

FlexPay

2-1 Buydown (no negative amortization if buy down account is fully funded)

Flexible Payment Loan

Negative Equity Loan

5 Year Cashflow Loan

Florida Mortgage Rates

Getting the right Florida Mortgage Program and Rate is probably the most important part of choosing your Florida Mortgage Loan. Having the best Florida Mortgage Rates will save you thousands of dollars through out the course of the mortgage Loan.

At American Mortgage Rates, we strive on finding the best Florida Mortgage Program and Rate possible for you, the client! Our Licensed Florida mortgage brokers constantly educate them selves on the latest and best Florida mortgage programs to better serve you. There are many different loan programs to choose from which all have different Florida Mortgage Program and Rate, so by staying educated in this area allows us to find you the best Florida Mortgage Program and Rate possible.

Fortunately, due to our production in the mortgage industry we have been able to meet certain standards with our lenders and banks. These standards allow us to pass additional savings to you the client because of our preferred pricing on our Florida Mortgage Program and Rate. Your Florida mortgage broker should go over all the possible Florida Mortgage Program and Rate when choosing your Florida Mortgage.

When inquiring about a Florida Mortgage to your Florida Mortgage broker, be sure to ask about what kind of pre-payment penalty that is associated with that particular Florida Mortgage Program and Rate, some Florida Mortgage Program and Rate have no pre-payment penalty where some have very high penalties. This is something your Florida Mortgage broker should go over with you when choosing the best Florida Mortgage Program and Rate for you.

Feel free to call or inquire over the web about today's Florida Mortgage Program and Rate, we will be happy to quote today's best Florida Mortgage Program and Rate that we have available to us.

Since we work with many Lenders we get the best Florida Mortgage Program and Rate available where when dealing with one particular bank they are limited to there own loan products where they might not have the best available Florida Mortgage Program and Rate that day, when banks compete with each you the savvy mortgage shopper could take advantage of this by working with a real good Florida Mortgage Broker who is up on the Florida Mortgage Program and Rate.

A fixed rate mortgage is a mortgage that has a fixed interest rate for the term of the fixed rate mortgage term. This means your principal and interest payment will not change for the entire term of the loan until it is paid off. A 30 year fixed rate mortgage means that you mortgage is fixed for 30 years. A 15 year fixed means the same that your payment will not change for 15 years and then your mortgage will be paid off.

An Adjustable rate mortgage is a mortgage that has an adjustable interest rate for the term of the mortgage. This means your principal and interest payment will change for the entire term of the loan until it is paid off. Adjustable mortgages can adjust monthly, yearly, or sometimes mat be fixed for 2, 3, 5, 7 and 10 years and then start to adjust more often.

For more information about our many loan programs and Florida Mortgage Program and Rate please call us at 954-475-8787 or fill out our short mortgage form.

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